Pennsylvania House Bill HB2063

Pennsylvania 2025-2026 Regular Session

• Introduced: 12/3/25
• Refer: 12/3/25

Caption

Establishing clean fuels standards; establishing the Clean Fuels Standards Board; imposing duties on the Clean Fuels Standards Board and the Department of Environmental Protection; and establishing the Fair Market Credit Trading Program.

Impact

The legislation mandates the formation of the Clean Fuels Standards Board which will set carbon intensity targets for various fuel types. These standards target an annual reduction in carbon intensity, ultimately requiring a 15% decrease in emissions below baseline levels for transportation fuels within ten years of the initial regulations’ adoption. The bill intends to incentivize compliance through a Fair Market Credit Trading Program, allowing obligated parties to trade credits representing reductions in carbon intensity.

Summary

House Bill 2063, also known as the Clean Fuels Standards Act, is designed to establish clean fuels standards for transportation and heating fuels in Pennsylvania. The bill aims to primarily reduce greenhouse gas emissions from these sectors, which are significant contributors to the state's carbon footprint. It seeks to create a regulatory framework that encourages the production and use of cleaner fuels through standards and compliance mechanisms.

Contention

Some notable points of contention arise from the preemption clause included in the bill, which specifies that local governments cannot enact stricter regulations on fuels than those established by the state. This raises concerns among local authorities and environmental advocates who argue that it undermines local control and the ability to tailor regulations to specific community needs. Nevertheless, proponents assert that uniform standards are crucial for simplifying compliance and driving statewide emissions reductions.